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FE D E RA L R E SE R V E BANK O F N EW YO R K f C ir cu la r N o. 3 8 7 6 1 L J u ly 10,1952 J Fiscal Agent o f the United States Offering o f $1,400,000,000 of 91-Day Treasury Bills Dated July 17, 1952 Maturing October 16, 1952 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District'. Following is the text o f a notice published today: F O R R E L E A S E , M O R N IN G N E W S P A P E R S , T h u rsd a y, Ju ly 10, 1952. T R E A S U R Y E>EPARTM ENT W a sh in g to n T h e S ecretary o f the T rea su ry, b y this p u b lic n otice, invites tenders for $1,400,000,000, or thereabouts, o f 91-day T r e a s u ry bills, fo r cash and in ex ch a n g e fo r T rea su ry bills m atu rin g J u ly 17, 1952, in the am ou nt o f $1,400,888,000, to be issued on a d iscou n t basis under com p etitive and n on -com p etitiv e b id d in g as h ereinafter provided. T h e bills o f this series w ill be dated July 17, 1952, and w ill m ature O c to b e r 16, 1952, w h en the face a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill be issued in bearer fo r m o n ly, and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m a tu rity v a lu e). T e n d e rs w ill be received at F ed eral R eserve B anks and B ran ch es up to the clo s in g hour, tw o o ’ c lo c k p.m ., E astern D a y lig h t S a vin g tim e, M o n d a y , Ju ly 14, 1952. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a sh in g ton . E ach ten der m u st be f o r an even m u ltiple o f $1,000, and in the case o f com p etitive tenders the price offered m u st be exp ressed on th e basis o f 100, w ith trot m o re th an th ree decim a ls, e.g., 99.925. F ra ction s m a y n ot be used. It is u rged that tenders be m ade o n the printed fo rm s and fo rw a rd e d in th e special en velopes w hich w ill be supplied b y F ed eral R eserve B anks or B ran ch es o n a pp lication th erefor. O th e rs th a n b a n k in g institutions w ill n o t be perm itted to subm it ten ders e x ce p t fo r their ow n a ccou n t. T en d ers w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com pa n ies and fro m respon sible and recog n ized dealers in invest m en t securities. T e n d ers fr o m •others m n st be a ccom p a n ied b y paym ent o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills a pplied fo r, u nless the tenders a re a ccom p a n ied b y an exp ress gu a ra n ty o f p a y m en t b y an in corp ora ted b a n k or trust com pan y. Im m ed ia tely after the clo s in g h our, tenders w ill be op en ed a t th e F ed era l R e serv e B anks and B ra n ch es, fo llo w in g w hich p u b lic a n n ou n cem en t w ill be m ade b y the S ecreta ry o f the T rea su ry o f the a m ou n t and price ran ge o f a ccep ted bids. T h o s e subm itting tenders w ill b e advised o f the a ccep ta n ce o r rejection th ereof. T h e Secretary o f the T rea su ry ex p ressly reserves the rig h t to a cce p t o r reject a n y o r a ll tenders, in w h ole o r in part, and his action in any such resp ect shall be final. S u bject to these reservations, n on -com p etitiv e tenders fo r $200,000 o r less w ith ou t stated price fro m a n y on e b idd er w ill be a ccepted in full at th e average price (in th ree decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade or com p leted at the Federal R eserve B ank on July 17, 1952, in cash or oth er im m ediately avail able funds o r in a like face a m ou n t o f T rea su ry bills m aturing J u ly 17, 1952. Cash and exch a n ge tenders w ill receive equal treatm ent. Cash ad ju stm en ts w ill be m ade fo r d ifferen ces betw een the par valu e o f m atu rin g bills a ccep ted in exch ange and the issue price o f the n ew bills. T h e in co m e derived fr o m T rea su ry bills, w h eth er interest or gain fro m the sale or oth er d isp osition o f the bills, shall not h ave a n y exem p tion , as such, and lo s s fro m the sale or oth er d isp osition o f T rea su ry bills shall n ot have a n y special treat m en t, as such, u nder the In tern al R even u e C ode, o r law s am en da tory o r su p plem en ta ry thereto. T h e bills shall be subject t o estate, inheritance, g ift, or oth er excise taxes, w hether F ed eral o r State, but shall be exem p t fro m all taxation n ow o r h ere after im p o se d o n the prin cip a l or interest th ereof b y a n y State, o r a n y o f the possession s o f the U nited States, o r b y any local ta x in g authority. F o r pu rposes o f ta xation the a m ou n t o f discou n t at w hich T rea su ry bills are o rigin a lly sold b y the U nited States shall be con sidered to b e interest. U n d er S ection s 42 and 1 1 7(a) (1 ) o f the Internal R even u e C ode, as a m en ded by S e ctio n 115 o f the R e ven u e A c t o f 1941, the a m ou n t o f d iscou n t at w h ich bills issued hereunder are sold shall n ot be con sidered to a ccru e until such bills shall be sold , red eem ed or oth erw ise disp osed o f, and such bills are ex clu d ed fro m con sideration as capital assets. A c co r d in g ly , th e o w n e r o f T rea su ry bills (o th e r than life insurance com pa n ies) issued hereun der need in clu d e in his in com e ta x return on ly the differen ce betw een the price paid fo r such bills, w hether on origin a l issue o r o n su b sequen t purchase, and the a m ou n t actu a lly received either u pon sale o r red em p tion at m aturity du rin g the taxable year fo r w h ich the return is m ade, as ord in a ry g a in o r loss. T re a su ry D epa rtm en t Circular N o. 418, as am en ded, and this n otice, prescrib e the term s o f the T rea su ry bills and govern the co n d itio n s o f their issue. C op ies o f th e circu la r m a y be obtain ed fro m any F ed eral R eserve B ank o r B ranch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, July 14. 1952, at the Securities Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f this circular to sub mit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A l l a n S p r o u l , President. Results of last offering of Treasury bills (91-day bills dated July 10, 1952, maturing October 9, 1952) T o ta l applied fo r .......... $2,160,945,000 T o ta l a c c e p te d ...............$1,400,233,000 (inclu des $189,754,000 entered on a n on -com p etitive basis and a ccepted in full at the average price show n b e lo w ) A v e ra g e p rice........ 99.547 E q u iva len t rate o f discou n t a p p rox. 1 .793% per annum R a n g e o f a ccep ted com p etitive bids: H ig h ...................... 99.600 E quivalent rate a p p rox. 1.582% L o w .......................... 99.543 E quivalent rate app rox. 1.808% o f discou nt per annum o f discou n t per annum (68 p ercen t o f the am ou nt bid fo r at the low price w as a ccep ted ) Federal Reserve District .... N ew Y o r k ................. .... Philadelphia .............. C leveland ................... R ich m on d ................... A tla n ta .................... St. L ou is ..................... M in neapolis .............. K ansas C ity ............... San F r a n cisco .......... T o t a l ................... .... Total Applied fo r $ 50,655,000 1,452,501,000 36,627,000 65,187,000 29,944,000 Total Accepted $ 244,473,000 35,332,000 10,673,000 53,729,000 65,687.000 85,109,000 49,695,000 723,021,000 21,627,000 65,187,000 29,944,000 31,028,000 232,553,000 31,980.000 10,673,000 53,729,000 65,687,000 85,109,000 $2,160,945,000 $1,400,233,000 ( over) 27Q IMPORTANT— If you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” If you desire to bid on a non-competitive basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid, except that banks submitting bids on a competitive basis for their own and their customers* accounts may submit one tender for the total amount bid at each price, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished upon request. TENDER FOR 91 -D A Y TREASURY BILLS Dated July 17, 1952 Maturing October 16, 1952 Dated at-------------------- To F e d e r a l R e s e rv e B a n k o f N e w Y o r k , Fiscal Agent o f the United States. __ 1952 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on July 10, 1952, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular N o. 418, as amended, and to the provisions o f the public notice on July 10, 1952, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender .................................................* for a total amount o f for a total amount o f $. (Rate per 100) (Not to exceed $200,000) $....................................................... (maturity value) o f the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b elow : (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notifce, as indicated below: □ □ By surrender o f maturing Treasury bills By surrender o f maturing Treasury bills amounting t o ..................... $---------------------------------- amounting t o ..................... $___________________■ □ □ B y cash or other immediately available funds By cash or other immediately available funds *P rice must be expressed on the basis o f 100, w ith not m ore than three decimal places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated July 17, 1952, and are to mature on October 16, 1952. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills” N a m e o f B id der ........................................................................................................................................... (Please print) By (Official signature required) (Title) Street A d d re s s ................................................ (City, Town or Village, P.O. No., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’ s name on line below: (Name of Customer) (City, Town or Village, P.O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill be con sidered, and each tender m u st be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f the person m a k in g the ten der is a corp ora tion , the tender should be sign ed b y an officer o f the co rp o ra tion authorized t o m ake the tender, and the sign in g o f the ten der b y an officer o f the co rp o ra tio n w ill be con stru ed as a represen tation b y h im that he has been s o authorized. I f the ten der is m a d e b y a partnership, it sh ou ld be sign ed b y a m e m b e r o f the firm , w h o sh ou ld sign in th e fo r m “ ....................................................................................................... a copartn ersh ip, b y ....................................................................................................................... a m em b er o f the firm .” 3. T e n d ers w ill be received w ith ou t dep osit fro m in corp ora ted banks and trust com p a n ies and fro m resp o n sible and re co g n ize d dealers in in vestm ent securities. T en d ers fro m others m u st be a ccom p a n ied b y paym ent o f 2 percent o f the face a m ou n t o f T rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent b y an in corpora ted b a n k or trust com pan y. 4. I f the lan gu age o f this ten der is ch anged in any respect, w h ich , in the op in ion o f the S ecretary o f the T rea su ry, is m aterial, the ten der m a y b e disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T E N T B 1150-a (o v e r ) Federal Reserve Bank of St. Louis